Republic of Uganda Interim evaluation Executive summary of the by jlhd32


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									             Document:           EC 2010/63/W.P.4
             Agenda:             5
             Date:               25 June 2010                           E
             Distribution:       Public
             Original:           English

             Republic of Uganda
             Interim evaluation
             Executive summary of the Vegetable
             Oil Development Project

                     Note to Evaluation Committee members
                                     Focal points:
Technical questions:                                 Dispatch of documentation:

Luciano Lavizzari                                    Deirdre McGrenra
Director, Office of Evaluation                       Governing Bodies Officer
telephone: +39 06 5459 2274                          telephone: +39 06 5459 2374
e-mail:                         e-mail:

             Evaluation Committee — Sixty-third Session
             Rome, 15–16 July 2010

             For: Review
                                                                        EC 2010/63/W.P.4


Abbreviations and acronyms                                                            ii

I.     Introduction                                                                   1
       A. Country background                                                          1
       B. The project                                                                 2
II.    Evaluation objectives, methodology and process                                 4

III.   Implementation results                                                         5

IV.    Project performance                                                          10
       A. Relevance                                                                  10
       B. Effectiveness                                                              11
       C. Efficiency                                                                 11
V.     Rural poverty impact                                                         12

VI.    Sustainability and innovation                                                14

VII.   Performance of partners                                                      16

VIII. Summary of ratings                                                            17

IX.    Conclusions and recommendations                                              18
       A. Conclusions                                                                18
       B. Recommendations                                                            20

I.     Project structure (adapted from project logframes)                            22
II.    Definition of the evaluation criteria used by the Office of Evaluation        23
III.   Acknowledgements                                                              24

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Abbreviations and acronyms

DAO        District Agricultural Office/Officer
FFBs       fresh fruit bunches
IOE        IFAD Office of Evaluation
KOPGT      Kalangala Oil Palm Growers Trust
MAAIF      Ministry of Agriculture, Animal Industry and Fisheries
NARO       National Agricultural Research Organisation
NEMA       National Environmental Management Authority
OPUL       Oil Palm Uganda Limited
OSSUP      Oilseed Subsector Platform
PCO        project coordination office
PMA        Plan for the Modernization of Agriculture
PPP        public-private partnership
R&D        research and development
UNBS       Uganda National Bureau of Standards
UNOPS      United Nations Office for Project Services
UOSPA      Uganda Oilseeds Producers and Processors Association
VODC       Vegetable Oil Development Council
VODP       Vegetable Oil Development Project

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Republic of Uganda
Interim evaluation
Vegetable Oil Development Project

Executive summary

I.   Introduction
A.   Country background
1.   Uganda achieved high rates of growth during the 1990s as a result of the
     implementation of the Government of Uganda’s Economic Recovery Programme,1
     macroeconomic stabilization, structural reform and buoyancy in the coffee export
     market. These rates have been maintained since 2000, with high inflows of foreign
     direct investment and official development assistance. As a result of its impressive
     growth and strong pro-poor policies, poverty declined from 56 per cent in 1992 to
     31 per cent in 2005.2 Human development indicators improved markedly during
     this period. The Human Development Index, which incorporates life expectancy and
     adult literacy along with gross domestic product per capita, rose from 0.272 in
     1995 to 0.581 in 2005.3 However, Uganda is still a poor country with a low per
     capita gross domestic product (GDP), a predominantly rural population (where
     most of the poverty is concentrated) and a high dependence on development
     assistance. Official development assistance accounts for about 50 per cent of the
     national budget.4 Additional challenges include its landlocked position and
     vulnerability to events in neighbouring countries such as past conflicts in the
     Democratic Republic of the Congo and Rwanda.
2.   Agriculture remains a key sector although its share of GDP5 and its growth rate6
     have been declining since 2000. In 2007, agriculture accounted for 50 per cent of
     exports and over 70 per cent of the labour force. In large parts of the country, it
     provides the main source of livelihood. Ugandan agriculture is typically portrayed as
     dominated by small-scale subsistence farming and rangeland herding; however,
     there has been a rising commercialization of smallholder production and growth in
     non-traditional agricultural exports, particularly fish, and cut flowers. Uganda is
     well endowed for agricultural production, with two rainy seasons per year7 and
     relatively fertile soils, but there are regional variations in these endowments.
     Agriculture is vulnerable to drought and floods. Food security remains a concern in
     drought-prone areas.
3.   The scope for growth and poverty reduction in the northern region has been much
     less than elsewhere due to adverse climatic conditions, insurgency and insecurity.
     Already less well endowed in terms of climate and soils, the region has been

        In 1987, following a period of turbulence, the Government embarked on an economic recovery programme aimed at
     restoring fiscal discipline, rehabilitating infrastructure and boosting export earnings. Investment incentives were
     increased and the exchange rate system reformed.
         IFAD Rural Poverty Portal: Uganda.
         Uganda Human Development Report. United Nations Development Programme (UNDP), 2007.
        According to the World Bank, official development assistance to Uganda in 2008 was US$1.66 billion. The national
     budget for fiscal year 2009/2010 is 7 trillion Ugandan shillings (around US$3.24 billion). Therefore the share would be
     roughly 50 per cent.
         Average agriculture share of GDP 2002-2007: 23.4 per cent, Uganda Bureau of Statistics, 2008.
         Average annual agriculture growth rate 2002-2007: 1 per cent, Uganda Bureau of Statistics, 2008.
         From March to May and October to November.
        In the north and eastern regions of Uganda, one third of annual weather records between 1946 and 1999 show
     either drought or floods, i.e. such events occurred every three years on average. First National Communication for
     Uganda, United Nations Framework Convention on Climate Change, October 2002.

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     affected over the last 20 or so years by an insurgency led by the Lords Resistance
     Army. Directly or indirectly, it is estimated that about two fifths of all districts and a
     third of the total population were affected. Since the signing of a cessation of
     hostilities agreement in August 2006, peace has been gradually restored in the
4.   Throughout the Vegetable Oil Development Project (VODP) period (1998-2010), the
     policy environment has been focused on growth, poverty reduction and agricultural
     modernization, with an increased role for the private sector. Since 1998, the
     Poverty Eradication Action Plan has provided the main national planning framework
     for the Government.9 Within that framework, the Plan for the Modernization of
     Agriculture (PMA) was launched in 2001. The vision of the PMA is poverty
     eradication through a profitable, competitive, sustainable and dynamic agricultural
     and agro-industrial sector. Decentralization has given greater authority and
     responsibility for service delivery to district local governments.
5.   IFAD operations in Uganda. Since the beginning of its operations, IFAD has
     financed 12 projects in Uganda for a total loan amount of US$230.5 million.10
     During the VODP implementation period, the Uganda portfolio has been guided by
     two country strategic opportunities papers, approved in 1998 and 2004
     respectively.11 Since 1990, IFAD’s support to Uganda has focused on three areas:
     improving agricultural technologies to help farmers move from subsistence to
     market-oriented production, promoting the decentralization process to strengthen
     local government and improve rural infrastructure, and supporting rural financial

B.   The project
6.   The goal of the VODP was to increase household cash income among smallholders
     by revitalizing and increasing domestic vegetable oil production. The objectives
     were to (i) develop a palm oil industry, which is well integrated into the subsector,
     to the benefit of smallholder growers and private sector processors, and (ii)
     optimize yields and oil extraction technology for sunflower and other arable oil
7.   The original project design of VODP had three components:
     (a)      Oil palm development. A total planted area of 4,500 hectares (ha) was
              initially planned, made up of a nucleus estate of 1,000 ha of oil palm on
              Bugala Island, Kalangala District and 3,500 ha for oil palm development by
              smallholders. After failed negotiations with the original private-sector
              investor, this component was redesigned between 2000 and 2003 as part of
              the negotiations with a new private-sector investor, BIDCO Oil Refineries
              Limited.13 As a result, the nucleus estate was to be increased to 6,500 ha,
              while the 3,500 ha for smallholder development was maintained, bringing the
              total area planted to 10,000 ha.
     (b)      Subsector development. As a first element, a vegetable oil development
              fund was to support traditional vegetable oilseed production and processing
              by farmers’ groups in the north, north-east and mid-west of Uganda; the
              main crops were sunflower, soybean, groundnuts and sesame. A second

         The Poverty Eradication Action Plan provides an overarching framework to guide public action to eradicate poverty.
     Its long-term strategic objectives include: reduced income poverty and inequality, improved human development and
     increased GDP growth. It is framed around five pillars, namely, economic management; production, competitiveness
     and incomes; security, conflict resolution and disaster management; good governance; and human development.
          IFAD Rural Poverty Portal: Uganda.
       The most recent country strategic opportunities paper was considered by the IFAD Executive Board in September
     2004 and a third is currently being developed.
          President’s Report 1997, appendix III, logical framework.
       BIDCO Oil Refineries Limited (Kenya) is the main private-sector partner; its executing agency for plantation
     development is Oil Palm Uganda Limited (OPUL).

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               element was to promote research and development (R&D) of essential oil
      (c)      Institutional support. This included the project coordination office (PCO); a
               newly established Vegetable Oil Development Council (VODC) to steer the
               PCO and promote the subsector; various institutes of the National Agricultural
               Research Organisation (NARO)15 to enhance adaptive research into various
               vegetable oil crops; the National Environmental Management Authority
               (NEMA) for environmental management of oil palm production and
               processing; the establishment of the Kalangala Oil Palm Growers Trust
               (KOPGT); and the Uganda National Bureau of Standards (UNBS) to develop
               quality standards for vegetable oils.

8.    The oil palm development, for the production of cooking oil, has focused on Bugala
      Island in Kalangala District on Lake Victoria.16 The predominant economic activity is
      fishing, but there are an estimated 1,300 smallholder farms scattered across the
      island. At appraisal, the target group consisted of subsistence and landless farm
      families on the island. The support for traditional oilseed production, also for
      cooking oil, started in six pilot districts in the north and north-east of Uganda and
      extended to eight neighbouring districts in 2002.18 The target group consisted of
      poor smallholder farmers, particularly women, growing sunflower for direct sale to
      millers or for crushing with a ram press. The essential oil activities, for the
      production of extracted scented oils used as fragrances for soaps, etc., was trialled
      in a variety of districts and no target group or geographical area was specified for
      the purpose.
9.    Time frame. The VODP was approved by the IFAD Executive Board in April 1997
      and the loan became effective in July 1998. Activities in the traditional oilseed and
      essential oil subprojects got under way quickly but implementation of the oil palm
      subproject only began in July 2003 because of delays in securing the private-sector
      partner. An agreement could not be reached with the top-ranked bidder. In 2000,
      the second-ranked bidder, BIDCO, signed a memorandum of understanding
      outlining broad areas of agreement including required changes in design, such as a
      sixfold increase in the nucleus estate. These changes took until 2003 to negotiate.
      This initial delay had implications for the activities related to palm oil. There were
      further delays in acquiring land for the nucleus estate, in attracting smallholders
      and outgrowers (see paragraph 21) to the project, and in establishing the KOPGT.
      Planting on smallholder farms began in 2006; harvesting of fresh fruit bunches
      (FFBs) only commenced in early 2010. Originally planned as an eight-year project,
      VODP has been extended from its original completion date of December 2005 to
      December 2011, by which time the project will have been under implementation for
      more than 13 years.
10.   Project costs. Originally, the total cost was estimated to be US$60 million,
      consisting of an IFAD loan of US$20 million, US$33.1 million in cofinancing from

        The traditional oilseeds supported by VODP are all edible oils such as sunflower. Essential oils are the extracted oil
      of plants that have a distinctive scent, or essence, of the plant. Examples include citronella and lemongrass.
        NARO is a semi-autonomous organization responsible for agricultural research carried out at a number of
      specialized research stations and institutes in different parts of the country.
           It has a total land area of 29,650 ha and a population of 17,355.
         The appraisal mentions a target of 3,000 farmers, including relocated landless farmers from the mainland and
      spontaneous farmers who would grow oil palm with their own resources. At present there are no farmers in either of
      these two categories. The 3,000 figure was clearly an overestimate given data on the total population. VODP Appraisal
      Report 1997, vol. I, p. 17.
         In that year, these 14 districts had a rural population of 5.4 million (approximately 835,000 households). The 14
      districts consist of pilot districts: Apac, Lira, Pallisa, Soroti, Kumi, Katakwi; expansion districts: Mbale, Masindi, Gulu,
      Pader, Sironko; Kitgum, Kapchorwa, Kaberamaido.
        The Government of Uganda-BIDCO agreement was signed in April 2003 and disbursement effectiveness for this
      subproject was declared in July 2003.

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      private-sector investors, US$3.8 million from the Government and US$3.1 million
      from beneficiaries. However, the scale of the oil palm subproject was later
      increased to ensure its financial and economic viability. The private investor and the
      Government increased their contributions to US$120 million and US$12 million
      respectively, bringing the new total project cost to around US$156 million.

II. Evaluation objectives, methodology and process
11.   It was necessary to undertake this interim evaluation because the Government
      requested IFAD to consider financing a second phase of the VODP.20 As the
      Government and IFAD desired to move from VODP to a second phase seamlessly,
      to ensure continuation of implementation without disrupting project activities, it
      was requested that the evaluation take place in 2009, before the project was
      expected to close.
12.   The objectives of the interim evaluation were to: (i) assess the performance and
      impact of the project; and (ii) generate findings and recommendations to guide the
      Government and IFAD in financing a follow-on project.
13.   The evaluation did not assess the project components as described in paragraph 7.
      The evaluation team found that this original three-component design did not
      coherently represent the different elements of the project and did not reflect the
      actual project structure in practice. During implementation, the project has focused
      on the three sets of crops, each with different objectives, target groups, modes of
      implementation, geographic areas and supporting institutions. These three sets of
      crops consist of oil palm from the first component of the original design and the
      traditional oilseeds (i.e. sunflower) and essential oils (i.e. citronella) from the
      second component. The third component mostly provides institutional support to
      organizations that focus on one of the three sets of crops. Therefore, a more
      coherent structure would have consisted of three different components or
      subprojects based on the three sets of different crops (oil palm, traditional oilseeds
      and essential oils). A revised project structure outlining the three subprojects, as
      agreed at the outset of the evaluation with the Government of Uganda and the
      Eastern and Southern Africa Division, is presented in annex I and serves as the
      basis for this report.
14.   The evaluation was conducted in line with the IFAD Office of Evaluation ( IOE)
      Evaluation Manual. It included assessment of: (i) the core performance criteria:
      relevance, effectiveness and efficiency; (ii) the five domains of rural poverty
      reduction impact: household income and assets, human and social capital and
      empowerment, food security and agricultural productivity, natural resources and
      the environment, and institutions and policies; (iii) sustainability and innovation,
      replication and scaling up; and (iv) the performance of partners including IFAD, the
      Government, cooperating institutions, and BIDCO. For each evaluation criterion, the
      final report provides a rating on a six-point scale (see annex II for definitions of the
      aforementioned evaluation criteria).21
15.   The evaluation was conducted in three phases: (i) the preparatory phase, which
      entailed writing of the approach paper, recruitment of the team of consultants and
      a desk review of documents; (ii) the fieldwork phase, which consisted of a
      preparatory mission in November 2008 by the lead evaluator and the main
      multidisciplinary evaluation mission in March 2009; and (iii) the report-writing
      phase, which entailed data analysis and report preparation, including the
      consideration of comments from IFAD’s Eastern and Southern Africa Division and

         In line with the IFAD Evaluation Policy, it is mandatory for the Office of Evaluation to conduct an interim evaluation
      before IFAD can finance a subsequent phase of a project or programme.
         The ratings are: 6 = highly satisfactory; 5 = satisfactory; 4 = moderately satisfactory; 3 = moderately unsatisfactory;
      2 = unsatisfactory; 1 = highly unsatisfactory.

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      the Government, and the preparation of the agreement at completion point
16.   The evaluation has drawn on project monitoring and evaluation data, a mid-term
      review, three baseline studies and one impact assessment study.23 Two extra
      studies were commissioned by IOE during the evaluation process in the traditional
      oilseed area: a participatory rural appraisal of household-level impacts and a
      macro-level analysis of poverty and vegetable oil consumption based on the
      Uganda national household survey data. These studies were intended to
      supplement gaps in information on social impact.
17.   As per established practice for all evaluations, a core learning partnership,24 was
      formed to assist in the evaluation process and to maximize the opportunities for
      learning. The core learning partnership was engaged throughout the process. They
      also participated in an evaluation learning workshop in Kampala in December 2009,
      which provided important inputs for preparing the evaluation’s ACP.

III. Implementation results
18.   A number of factors affected the implementation of VODP. The main issues for the
      oil palm subproject were a five-year delay in finalizing negotiations with BIDCO and
      a further two-year delay in establishing the KOPGT, the key institution for
      mobilizing smallholder participation in the project. In addition, the project
      encountered substantial public opposition arising from complaints about proposed
      tax concessions and concerns about the environmental effects of oil palm
      plantation on the island. A final factor was difficulty in acquiring sufficient land on
      the island for the expanded nucleus estate. Procuring the needed land became
      more challenging when it was decided not to degazette25 public forests and to
      include a 200-metre vegetative buffer strip between the plantation and the
19.   As far as the traditional oilseed and essential oil subprojects are concerned, the
      main factors affecting implementation were exposure to insurgency, drought and
      floods. The traditional oilseeds were also affected by the subdivision of the districts
      in 2005-200626 and the reorganization of agricultural extension services, both of
      which reduced the operational reach of the District Agricultural Offices (DAOs) – a
      key implementing partner for the project. The emergence, through the private
      sector, of an alternative sunflower production/milling system to the VODP-
      supported products and activities handled by the DOAs, also undermined their
      attractiveness to farmers. However, the overall increased support and attention to
      oilseeds – from VODP and the private sector – had a synergistic effect in
      contributing to the growth in the oilseed subsector.
20.   Oil palm. Once the Government of Uganda-BIDCO agreement was signed, the
      investor moved rapidly towards implementation. Oil Palm Uganda Limited (OPUL)
      was immediately set up to run the plantation in association with Wilmar Plantation
      Services. The nucleus estate and the refinery at Jinja were largely established

        The ACP reflects an understanding between IFAD and the Government on the findings and recommendations of the
        The impact assessment study was commissioned by the Ministry of Agriculture, Animal Industry and Fisheries
      (MAAIF) and carried out by an independent consultancy firm (Bergen Consult [U] Ltd.) in 2006/07.
         Consisting of (i) MAAIF and agricultural research centres; (ii) Ministry of Finance Planning and Economic
      Development; (iii) NEMA; (iv) VODP Coordinator; (v) OPUL as the private sector cofinancing partner; (vi) district
      officials; (vii) KOPGT; and (vii) IFAD-country programme management team.
           In this context, to degazette means to declare the forest non-protected after having been designated as protected.
        The expansion from 14 to 23 districts meant that VODP had to liaise with more districts, which increased operational
         Wilmar Plantation Services is a branch of Wilmar International Limited, a palm oil trading company based in
      Singapore. Its operations are located in more than 20 countries across four continents, with a primary focus on China,
      India, Indonesia, Malaysia and Europe.

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      within the first two years. OPUL recruited the necessary labour force for the
      nucleus estate and outgrower fields (currently 1,469 workers), constructed
      plantation roads (300 km so far)28 and established field headquarters, a workshop,
      and workers’ quarters and amenities. At the time of the mission, 7,700 ha had
      been made available to OPUL, of which 6,000 was plantable land and 5,624 ha had
      been planted. The PCO expected the outstanding 500 ha to be delivered by the end
      of 2009.29 The oil extraction mill was under construction and scheduled to be
      operational by September 2009. OPUL provided a month of residential training on
      oil palm for KOPGT and has also supplied KOPGT with the necessary inputs when
      required, along with technical backstopping. One exception was a recent delayed
      delivery of seedlings arising from uncertainty about land availability.
21.   Although the project refers to “smallholders” in the general sense of small farmers,
      the oil palm subproject distinguishes between (i) “outgrowers”, who pledge their
      land for 25 years and receive a full range of establishment and management
      services from OPUL for the first three years; and (ii) “smallholders”, who grow and
      manage oil palm on their own land, supported by the inputs and other services
      provided by OPUL and financed by the loans administered by KOPGT. It was
      originally intended that 1,250 ha would be designated as outgrower plots and
      2,250 ha would be assigned to smallholders, making 3,500 ha in total.
22.   KOPGT was incorporated as a trust in June 2005 and started operating a year later;
      a tripartite agreement covering its relations with OPUL and the Government was
      signed in August 2006. KOPGT represents the interests of farmers, national and
      local government, local NGOs and VODP. The objectives of the trust are to defend,
      promote and represent the interests of oil palm farmers and to perform a brokering
      role between farmers, the Government and OPUL, including the provision of loans
      for oil palm establishment. Major mechanisms for representing the interests of its
      beneficiaries are: a 10 per cent shareholding in OPUL;30 participation in a
      multistakeholder FFB pricing committee; and membership of a services cost
      panel. In addition, KOPGT performs a wider role than that envisaged at design.32
23.   KOPGT has mobilized and organized farmers through their unit and block
      committees. With regard to the extension service provided to the smallholder oil
      palm growers, KOPGT is the principal agent, with only a minimal contribution from
      the DAO and its staff. The KOPGT extension staff are capable of advising on
      establishment and maintenance but have not yet received training on harvesting
      practices. Their knowledge is basic and will need to be developed further, especially
      in such areas as fertilizer use, harvesting techniques and record keeping.
24.   The oil palm growers’ scheme was devised to address the need for short-term
      financing to cover OPUL’s provision of inputs and services to smallholders during
      the initial stages of plantation establishment. Modelled on other outgrower
      financing schemes in Uganda in sugar cane and tea, it provides an “advance” to
      farmers in cash or kind, to be recovered through harvest payment deductions by

           No target was specified in the design for the number of kilometres of road constructed.
        See paragraph 11. As this was an interim evaluation, the evaluation took place in 2009 before the project was
      scheduled to close in December 2011. It was therefore not possible to report on the final implementation results as of
      July 2010 when the evaluation will be considered by the IFAD Evaluation Committee.
        In March 2009, using IFAD funds, the Government purchased a 10 per cent shareholding of OPUL, valued at
      US$600,000 plus the land for the nucleus estate on behalf of KOPGT.
         The price for the FFBs is based on an agreed formula set out in the Government of Uganda-BIDCO agreement; the
      pricing committee will monitor compliance with this formula. The services cost panel, comprising the KOPGT manager
      and credit officer, two trustees and two block representatives, agrees to the price of inputs provided to smallholders
      and, through OPUL, to outgrowers. This structure is smaller than originally envisaged to enable speedier decision-
         It undertakes farmer registration and organizes farmers’ groups, coordinates land survey work with Kalanga district
      local government, administers loans and coordinates the provision of services and inputs to the farmers by OPUL, and
      engages in general public relations for the project.

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25.   Progress with the establishment of the smallholder and outgrower oil palm
      plantings has been slow.33 At the time of the mission, a total of 2,294 ha had been
      registered and surveyed (66 per cent of the target) but only 1,151 ha had been
      planted because of ongoing land clearance operations and shortages of seedlings.
      The uptake has been much slower among outgrowers than smallholders because of
      the small and scattered nature of farmers’ land holdings, which are below the
      minimum block size, and concerns about the lengthof the commitment. Only 33 per
      cent of the target outgrower land has been registered and only 18 per cent planted,
      compared with figures of 84 per cent and 41 per cent respectively for smallholder
      land. In all, there were 651 beneficiaries, of whom 72 were outgrowers, and 579
      smallholders. Of these beneficiaries, approximately 31 per cent are women.
26.   The first harvest of FFB from oil palm is envisaged to be in 2010.34 The knowledge
      and skills required to ensure that the best quality FFBs are delivered to the mill are
      still to be disseminated from OPUL to KOPGT and its field extension staff, and
      onwards to the farmers. Discussions on logistics (FFB collection centres and field
      access roads/tracks) were just begining at the time of the evaluation mission.
      Delayed construction of farm field access roads was causing concern among
27.   Three environmental impact assessments were undertaken, possible negative
      impacts identified and appropriate measures put in place. An environmental
      management plan was developed and is being implemented. In approving the 2003
      Environmental Impact Statement, NEMA formulated 24 risk mitigation conditions to
      be fulfilled and OPUL seems to be doing its utmost to meet the requirements.
28.   Environmental monitoring is taking place through the relevant government
      ministries and agencies and the high-level impact monitoring system that was set
      up in 2006 is operating effectively.
29.   The VODP’s funding to the Coffee Research Centre was to enhance the research
      base for oil palm development activities and most research tasks listed in the NARO
      memorandum of understanding were covered. However, the increased awareness
      about oil palm research has not been reflected in increased government funding to
      the Coffee Research Centre for oil palm research.
30.   The Government procured a new 120-ton ferry, rehabilitated a second ferry and
      constructed ferry landings, which greatly increased commercial traffic to the island.
      It also upgraded the 68 km of spinal road on the island and built additional feeder
      roads, which reduce transportation costs and facilitate the delivery of inputs and
      technical services to smallholders.
31.   Traditional oilseeds. The subproject substantially expanded its geographic
      coverage by increasing the number of districts and subcounties where it worked.
      The number of beneficiaries supported by VODP under the traditional oilseed
      subproject expanded from 5,149 in 1998/99 to 206,943 in 2007/08. In 2008, this

         This is because of small farm size, the long gestation period required for oil palm (four years), concerns about the
      level of investment required, distrust of OPUL, etc.
        See paragraph 11. As this was an interim evaluation, the evaluation took place in 2009 before the project was
      scheduled to close in December 2011. It was therefore not possible to report on the final implementation results as of
      July 2010 when the evaluation will be considered by the IFAD Evaluation Committee.
           OPUL considers that environmental protection works in their favour, enhancing their international reputation.
        The impact monitoring system has 11 members representing MAAIF, NEMA, the National Forest Authority, the PMA
      donor subgroup, the National Organic Agricultural Movement of Uganda, the Kalangala district local government,
      OPUL, KOPGT and the PCO.
        Its mandate is to monitor compliance of oil palm development in line with NEMA conditions, to investigate any
      unanticipated concerns or negative impacts, and deal with any other enquiries, concerns or criticisms that might arise.
         A project beneficiary is defined as any individual who has received a service from the project (e.g. has
      participated in a training, demonstration, field day or farm visit). The majority are cultivating sunflower
      or other vegetable oil crops or have grown them at one time.

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      would have represented about a quarter of total households in the project area,
      assuming one beneficiary per household. The proportion of women remained
      relatively constant at 39 per cent.
32.   The research, which involved two NARO research stations and farmers’ field
      schools, mainly focused on the improvement of existing oilseed varieties,
      development of new varieties, and the testing, release and purification,
      production and distribution of foundation and breeder seed. Several varieties of
      groundnut, sesame and hybrid sunflower were released, but no open pollinated
      alternative varieties40 to Sunfola41 had been developed at the time of the evaluation
      mission. The fact that no local open pollinated varieties of sunflower were released
      during the 10 years of the project ultimately limited the impact on the scale of
      production and productivity of the subproject’s main cash crop as an increased
      supply of improved seed was needed.
33.   The Uganda Oilseeds Producers and Processors Association (UOSPA) carried out
      seed multiplication and distribution and also trained extension staff and farmers in
      sunflower cultivation. Initially, the project was selling the seed to farmers but
      starting in 2002/03, it was distributed free under the Poverty Action Fund as part of
      a government strategic poverty intervention. This was meant to be a short-term
      intervention since it was not PMA policy to distribute free inputs but the project has
      continued to distribute free seed to date. However, it gradually reduced the amount
      distributed to the districts and encouraged a more sustainable seed supply system
      by diversifying its procurement from other private companies besides UOSPA. A
      total of 548,721 kg of Sunfola seed was distributed to farmers between 1998 and
      2008. Seed distribution increased steadily until 2004/05, after which it stabilized
      at a slightly lower level and then fell by half in 2007/08. This reflects VODP’s policy
      of gradual withdrawal of free seed and farmers’ switching to the Mukwano43 hybrid
      seed. The increased supply of improved seed to farmers boosted yields and directly
      expanded cultivation of sunflower. Over the project period, the area planted with
      sunflower with VODP support rose from 2,102 ha in 1998/99 to 81,548 ha in
34.   Although it was not the only crop supported, the extension effort was concentrated
      on sunflower, because of its high oil content, general disease resistance,
      amenability to cottage processing and marketability. The strategy of working
      through the DAOs to reach organized farmers’ groups allowed extension advice to
      farmers to be rapidly scaled up. This increased the area of sunflower under
      cultivation and also attracted other providers of extension services, such as
      Mukwano. However, the degree of VODP’s extension effort has varied over the
      period and has tailed off in recent years.
35.   Over the ten years of the project’s operation, a cumulative total of 5,906 new
      farmers’ groups were formed. Many of these groups were formed in the first two
      years as a result of intense publicity efforts, but then the numbers fell because of

         Varieties that are imported or developed in Uganda must undergo field tests over a number of growing seasons and
      the results (yield, disease tolerance, stability, etc.) must be accepted by the Variety Release Committee before being
      marketed as certified seed. Purification (re-release) is necessary when a previously released variety becomes
      vulnerable to new strains of disease or loses its resistance to disease.
        Open-pollinated varieties are the traditional varieties that have been grown and selected for their desirable traits for
      millennia. They grow true from seed, which means they are capable of producing seeds for the next planting season
      from this season’s plants. These seeds will produce seedlings that will be just like the parent plant. This is often useful
      for smallholder farmers as it allows them to save seed from one year to the next as opposed to having to buy hybrid
      seeds annually.
         Sunfola was the most prevalent open pollinated variety. It produces acceptable yields and is easy to crush because of
      its thin seed coat.
         A very high proportion of this was distributed in the early years to two of the pilot districts, Apac and Lira, which
      accounted for a third of total seed distribution, and over half of that was distributed between 2000 and 2002.
        A Uganda-based conglomerate. It had benefited from United States Agency for International Development (USAID)
      support for its work with the oilseeds value chain.

                                                                                                          EC 2010/63/W.P.4

      problems with insurgency in three of the six pilot districts. Particular efforts were
      made to encourage women to join the farmers’ groups. A total of 8,542 training
      sessions were carried out, at which 40 per cent of participants were women.
      Training modules included group development and dynamics, agronomy, post-
      harvest handling, cottage processing, farming as a business, and savings and
      credit. Seven thousand nine hundred and forty-four demonstration plots were
      established and 53,388 farm visits and 1,393 field days held.
36.   A total of 343 ram presses, to extract oil from the sunflower seeds, were
      distributed for demonstration. Groups were also encouraged to contribute towards
      the cost and the proceeds were used to buy machines for other groups under a
      revolving fund scheme (e.g. in Soroti and Masindi). Initially, the ram press proved
      to be important as a source of value addition, both for domestic consumption and
      for local sales of oil. However, it was not without problems and currently there are
      many ram presses in disuse.44 However, the ram press remains appropriate in
      remote areas without electricity.
37.   A memorandum of understanding was signed between VODP and the UNBS in 2003
      to improve the quality, safety and competitiveness of the vegetable oil subsector.
      Twenty-eight product quality standards have been developed for sunflower, sesame
      and groundnuts. Guidelines for good manufacturing practices by small and medium
      vegetable oil mills have been drafted and a vegetable oil processing quality control
      manual prepared. UNBS has focused more on self-regulation through training,
      technical support and public campaigns, working with the sector associations and
      municipal councils. Over 100 local government staff, millers, machine operators
      and traders have participated in regional sensitization and training workshops
      about food standards.
38.   One role of VODC was to promote the interests of the vegetable oil subsector
      through coordination, information exchange, priority setting, policy advice and
      mobilization of resources for R&D. Undoubtedly there is an important role to be
      played in this respect although it was probably premature at the time, given the
      immaturity of the subsector, the fragmented nature of the value chain and mutual
      suspicion among some of the players. VODC did not fulfil this intended role and it is
      not clear that it was the appropriate institution to do so given that it was also
      providing oversight to VODP. The subsectoral advocacy role has recently been
      assumed by a new institution, the Oilseed Subsector Platform (OSSUP), set up in
      2007, which acts as a platform for all actors in the value chain for information
      exchange, networking and coordination, influencing policy formulation and
      advocacy for the subsector.
39.   Essential oils. Substantial progress was made in screening and identifying
      potential essential oil crops and piloting commercial development on farmers’ land.
      The most successful crop was citronella, which is now grown, processed and sold
      by almost 800 farmers. However, bottlenecks emerged in the distilling and
      marketing processes that would impede large-scale production at the present time.
40.   Project management. The PCO was set up in 1998 with the appointment of a
      project coordinator and secondment of five staff45 from the Ministry of Agriculture,
      Animal Industry and Fisheries (MAAIF), the official executing agency of the project.
      It has provided an efficient transfer of funds, technical backstopping, training on
      monitoring and evaluation, and support through public relations and publicity. This

        It suffered a high depreciation rate and a lack of spare parts, which local artisans found difficult to fabricate. The
      operation of the ram press is very arduous and it is difficult for women to use, which created problems for some
      women’s groups. The cost of the machine rose rapidly due to the rising price of imported materials. There were some
      complaints about the quality of the processed oil. The machine could not process the harder shelled hybrid variety that
      farmers were increasingly growing for Mukwano; and finally, the ram press has a low oil extraction rate, which soon
      created a bottleneck once local supplies of seed had expanded.
           The staffing level has increased to the current 15 members.

                                                                                                           EC 2010/63/W.P.4

      role was particularly important in the oil palm subproject when it was suffering
      delays in implementation and negative publicity.
41.   The project’s unique public-private partnership (PPP) structure called for a diverse
      multistakeholder steering and oversight mechanism. Among its functions, the
      VODC was charged with steering and guiding project implementation. It was set up
      in 1999 and has seven members.46 In this capacity, it has approved plans and
      budgets, provided technical and operational guidance, visited the two project sites,
      and has advocated for the project in a number of public forums.

IV. Project performance
A.    Relevance
42.   The VODP objectives are highly relevant to government policy both on the
      modernization of agriculture as a source of growth and poverty reduction, and on
      fostering partnership with the private sector in that process. They are also relevant
      to the Government's objectives of promoting import substitution and export
      diversification. By working with poor smallholder farmers, VODP is highly relevant
      to IFAD’s overall corporate goal and the current Uganda country strategic
      opportunities paper. In 2005, IFAD developed a strategy for private-sector
      partnerships to develop partnerships with a range of private-sector operators,
      bringing a bottom-up approach to working with this sector. It aimed to perform a
      catalytic role in promoting dialogue between the public and private sectors and
      leveraging higher levels of investments. Although VODP was designed before the
      IFAD strategy was developed, it is an example of the kind of project envisaged
      under this strategy.
43.   The broad approach to the development of the traditional oilseed subsector was
      appropriate. The focus on increasing oilseed production, which constituted the core
      focus of the project, depended on the proper functioning of the entire value chain.
      The project accurately focused on the weaker links, such as seed supply, in the
      chain at the time.
44.   In general, the target group for the project was broadly defined in terms of poor
      rural smallholder farmers engaged in subsistence farming. Targeting was mainly on
      grounds of geography, poverty and agro-ecological suitability. It was known that
      poverty in Uganda was more concentrated in the north, which had been
      perpetuated by decades of civil unrest and where agro-ecological conditions were
      less favourable. The choice of Bugala Island as the main project area for oil palm
      production was primarily made on grounds of agro-climatic suitability, although the
      fact that it was an area of subsistence agriculture and fishing helped to justify the
      choice. For the traditional oilseeds subproject, targeting was carried out through
      the selection of the districts and subcounties within them.
45.   The project has suffered from a weak logical framework,48 focusing mainly on oil
      palm,49 which has undermined effective planning and monitoring. The identification
      and management of risk in the project could have been better. The financial
      allocations at initial design were not appropriate for the expanded scale of oil palm
      production that was necessary for the project to achieve its objectives.
46.   The relevance of the VODP is assessed overall as satisfactory.

        Four members represent government ministries and agencies (MAAIF; the Ministry of Tourism, Trade and Industry;
      the Ministry of Finance Planning and Economic Development; and NARO), two represent the private sector (OPUL and
      UOSPA), and one represents farmers of the Uganda National Farmers’ Federation.
           IFAD’s Private-Sector Development and Partnership Strategy. April 2005.
        The first logical framework was done at appraisal in 1997; thereafter it was modified twice, once in 2005 and very
      recently in December 2008.
        Only two outputs were specified for traditional oilseeds, almost no activities and no targets. There was nothing at all
      on essential oils or food standards and little on institutional support.

                                                                              EC 2010/63/W.P.4

B.    Effectiveness
47.   Developing an oil palm industry in partnership with the private sector. The
      effectiveness of the oil palm subproject has been mixed. It is greatest where it has
      been under the control of the private-sector partner, i.e. on the nucleus estate and
      the refinery, but less effective in meeting the targets for smallholder and outgrower
      plantings. Positive results have been obtained with regard to the establishment of
      KOPGT and the environmental monitoring system. At the time of the evaluation
      mission, the nucleus estate was largely established, with 92 per cent of the target
      6,500 ha available for planting and 86 per cent of it planted. The required
      infrastructure was in place, but crucially, harvesting of FFBs had not yet begun. The
      smallholder and outgrower plantings are well below the target of 3,500 ha. The
      recent project extension adds another two years of harvesting before project
      completion, which, if successful, could accelerate the pace of mobilization and
      contribute to greater effectiveness.
48.   Optimizing yields and oil extraction technology for sunflower and other
      arable oil crops. This subproject has been effective despite intermittent problems
      of insurgency and bad weather. The number of beneficiaries exceeds the original
      target of 60,000 households and the area planted with sunflower has increased.
      Over the project period, the area planted with sunflower with VODP support rose
      from 2,102 ha in 1998/99 to 81,548 ha in 2007/08, although there were variations
      in some years and some districts. New farmers are becoming involved in sunflower
      growing and existing farmers are increasing the proportion of land used for
      sunflower. Improved seed has increased yields.
49.   The subproject also realized significant achievements in all its outputs and
      contributed to encouraging oilseed production, processing and milling by other
      actors. The number of oil mills in Lira alone increased from 3 in 1998 to 26
      currently, and 12 mills are now operating in other districts. The strategic support to
      the subsector at various points in the value chain helped to ease key bottlenecks,
      particularly in improving seed supply and providing extension support to farmers to
      overcome their hesitancy over sunflower growing. This produced an overall
      improvement in value chain efficiency. These achievements could have been even
      greater with more applied research focusing in particular on soil fertility, more
      encouragement of private seed suppliers through a speedier withdrawal from the
      distribution of free seed, and a more sustained and deepened extension effort in
      recent years.
50.   The essential oil subproject was of an exploratory R&D nature but it achieved its
      aim of verifying the potential for a range of essential oil crops in terms of their oil
      content, yield, vulnerability to disease, agronomy and commercial prospects. The
      scope for expanding cultivation of some of these crops has been identified provided
      that certain bottlenecks, such as difficulty in marketing, are addressed. The project
      has demonstrated that under the right conditions, some of these high-value crops
      could offer impressive returns to farmers in poor agro-ecological conditions.
51.   Overall, the good performance of the traditional oilseed subproject has been offset
      by the delayed effectiveness of the oil palm subproject and the small-scale results
      of the essential oils subproject; therefore the effectiveness of the project as a
      whole is assessed as moderately satisfactory.

C.    Efficiency
52.   It is not possible to compare the costs with other projects in Uganda or the region
      because the project is unique in its approach. Project cost per beneficiary of the
      IFAD loan varies greatly across the subprojects due to the different scale of
      investment, the implementation strategy adopted and the level of beneficiary

           Impact Assessment Study, p. 21-22 and mission interviews.

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      participation.51 The higher cost and limited reach of the oil palm and essential oil
      subprojects are balanced by the lower-cost higher-reach oilseed subproject. In
      addition, overall project efficiency is helped by the fact that the high IFAD loan
      beneficiary-cost ratios of the oil palm and essential oil subprojects amount to only
      33 per cent of total project expenditure compared with the lower-cost traditional
      oilseed subproject (44 per cent).52 Therefore, the average project cost per
      beneficiary of VODP is US$85.
53.   The five-year delay in implementation of the oil palm subproject had several
      implications for efficiency. In the case of the Government, project counterpart
      funding had to increase by more than 300 per cent.53 As for the private investor,
      there has been a cost escalation in the oil-palm-related investment.54 The delayed
      implementation of the subproject has meant delayed harvesting of FFBs. This will
      obviously push back the timing of the oil palm investment’s payback period and
      also delay the realization of cash flows for OPUL/BIDCO, outgrowers and
      smallholder oil palm growers. Further, the delay slowed down overall project loan
      disbursement and required a reallocation of funds between the two subprojects and
      several project extensions, as well as incurring interest on non-disbursed loan
      funds. In addition, the project extension will impact on IFAD supervision and
      implementation support costs as supervision will need to be carried out over a
      longer period of time.
54.   The traditional oilseed subproject has been underpinned by realistic costs that are
      consistently based on approved workplans and budgets. However, a number of
      issues have affected the efficiency of the subproject. The subdivision of the districts
      had the effect of increasing coordination, implementation and monitoring costs. The
      insecurity also slowed the pace and outreach of the project. There is little evidence
      of active collaboration between the implementing partners and other organizations
      promoting similar value chain activities (NGOs and donor programmes),55 which
      could have provided an opportunity for leveraging additional resources, synergy
      and impact.
55.   Overall, project efficiency is rated as moderately unsatisfactory.

V. Rural poverty impact
56.   Household income and assets. With oil palm, the main asset for participating
      smallholders has come from the improved land rights (certificates of occupancy)
      and access to financial services. Some have benefited from the cash saved from
      KOPGT loans provided for land clearance. In some villages near the nucleus estate,
      farmers have been able to increase their income from sales of food to the workers.
      In most cases, the extra income has been used for better diet, family expenses and
      school fees. However, the scale of this impact is small. On the nucleus estate,
      1,649 employees have benefited from employment, wages, housing, subsidized
      food, free health care and social security.
57.   Smallholder production and processing of oilseeds are generating positive returns
      and raising household incomes. The impact assessment study showed that oilseed
      sales had increased significantly as the main source of household income and
      sunflower had overtaken groundnuts as the single most important source.
      Sunflower production has also boosted income from the sale of seed, cake and oil
        The cost per beneficiary ranges from US$7,923 for oil palm to US$575 for essential oils to US$37 for traditional oil
           The remaining 23 per cent of project costs supported project coordination.
        This is mainly the result of the escalation in the cost of land for the nucleus estate, the new ferry and the
      unanticipated expenditure on mitigating criticism of the project.
         The overall average cost of plantation establishment and management has gone up by 42 per cent from the initially
      projected cost per ha of US$4,200 to the current projected cost of US$6,000 per ha.
       For example, the United States Agency for International Development (USAID) and the Danish International
      Development Assistance (DANIDA) funded projects on hybrid sunflower production in the Lira subregion.

                                                                                                         EC 2010/63/W.P.4

      and it has generated new income streams from complementary enterprises, such
      as bee-keeping, raising poultry and keeping pigs, fish farming and preparing and
      selling cooked food. The immediate benefit of increased income and employment is
      higher expenditure on food, clothing, home furnishings and consumer durables
      such as mobile phones and bicycles. Two thirds of citronella growers said that their
      income had improved as a result of their citronella crop.
58.   Human and social capital, and empowerment. With oil palm, farmers’
      empowerment has increased, particularly through the organization of the unit and
      block committees, membership of KOPGT and the recently formed Kalangala Oil
      Palm Growers Association. These organizations provide a range of services – such
      as settlement of land disputes, and access to extension services and loans – and
      have given farmers a stronger voice, for example in their relations with OPUL.
      Farmers have learned how to elect officers, conduct meetings and prepare reports.
      Women have been actively encouraged to participate in the project, and make up
      32 per cent of smallholders.
59.   The traditional oilseed farmers’ groups formed and strengthened by VODP have
      been an important mechanism of empowerment. Their internal organizational
      capacity has been enhanced by the project’s training. Members are now linked to a
      larger number of external organizations and have more confidence in relating to
      people in authority. Sunflower growing has helped to improve women’s position by
      further breaking down the traditional gender division of labour on the farm,
      increasing women’s access to farm assets and new income-generating activities
      such as sales of oil.
60.   Food security and agricultural productivity. With oil palm, the cash advances
      provided by the project (and discussed in paragraph 24) contributed to food
      security; however, food security remained a challenge. Some of the oil palm
      farmers visited by the mission said they experienced shortages of food at certain
      periods during the year. This situation is expected to improve once the income from
      FFB harvesting enables them to buy food to compensate for their reduced food
61.   In the oilseed-producing districts, farmers are still maintaining a highly diversified
      farming system, growing a range of cash and food crops and rearing small
      livestock. On average, sunflower is grown on between a third and a quarter of
      available land. The increased income from planting sunflower more than
      compensates for the reduction in land available for their own food production. This
      was also the case for citronella farmers where the requirement for land is small.
      The project has generated nutritional benefits from increased cooking oil
62.   Natural resources and the environment. With oil palm, the project recognized
      that agriculture, particularly on the scale and intensity intended for Bugala, will
      have an impact on the environment (e.g. in terms of land use). Project activities
      have included environmental assessments prior to project start-up and incorporate
      mitigation measures to address the potential negative impacts and compliance
      monitoring. All parties have respected their commitments to regularly monitoring,
      reporting and following-up to address any newly emerging problems. Good
      practices have been introduced to minimize soil erosion and siltation. The fact that
      oil palm plantations are developed on grasslands and secondary private forests has
      limited the negative impact of lost biodiversity. The introduction of a monoculture
      raises the potential risk of disease and pests, which will need to be monitored.

           Impact of Citronella on Food Security. MAAIF, 2008.
         Citronella growers allocated only 10 per cent of their land to this crop on average and much more to food crops or
      livestock. Impact of Citronella on Food Security. MAAIF, 2008.

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      Monitoring of central forest reserves has increased with the project, which has
      affected the access of local people to these reserves.58
63.   The cultivation methods for oilseeds use very little fertilizer or pesticide and have
      limited negative environmental impact, although this means that soil fertility is
      being depleted. The risk of soil erosion is no greater in the cultivation of traditional
      oilseeds than in other cash crops and in some areas the increased income from
      oilseeds has meant that charcoal burning has declined as a source of livelihood,
      thereby reducing deforestation.
64.   Citronella and lemon grass cultivation have potentially negative environmental
      effects because of the need for fuel wood for distilling.
65.   Institutions and policies. VODP has had a major impact on institutions. It did
      not have a significant influence on policies as this was not a focus of the project. In
      addition to setting up KOPGT – which is providing important services to farmers –
      from scratch, the project has provided increased resources for the Kalangala
      district local government, particularly those departments most closely linked to the
      project, such as the DAO, the District Engineer and the Land Survey Department.
      This has enabled them to improve service delivery on the island. However, there is
      increased pressure on other Kalangala district local government resources (e.g. in
      education and health) arising from the general increase in population, to which the
      project has contributed. The intensive environmental monitoring programme
      gives NEMA a unique opportunity to gain experience in dealing with environmental
      risks. This experience will be valuable for NEMA’s assessment of environmental
      issues in relation to other types of large agricultural production and processing in
66.   The use of the district extension service for project implementation has increased
      staff skills, knowledge and commitment to vegetable oilseed production. There has
      been substantial economic impact on traders, input dealers and private millers,
      particularly around Lira. VODP’s cooperation with NARO has contributed to the
      updating and development of knowledge and skills in the participating research
      institutes. VODP support enabled the UNBS to develop its technical and human
      resource capacity.
67.   Overall, the project’s impact on rural poverty is rated satisfactory.

VI. Sustainability and innovation
68.   Sustainability. The overall sustainability of the oil palm development on Bugala
      Island depends on the profitability of the private investor responsible for the
      harvesting, processing and eventual sale of the palm oil. The sustainability of the
      private investor appears likely as the market for cooking oil in Uganda and in the
      region, for which BIDCO already commands a reasonable share, is robust and
      growing. VODP’s commitment and sustainability are underpinned by the heavy
      financial investment so far incurred, supported by well-functioning forward market
      linkages already established on the basis of the sale of refined (imported) crude
      palm oil. The current dependence on the imported crude palm oil will be offset by
      the production from Bugala once the first harvest is undertaken and the mill on
      Bugala begins operation.61 The sustainability of outgrower and smallholder
      participation in the project will hinge on the level of benefits realized through the
      FFB harvests and there is every prospect that the harvests will be successful.

           People accessed these forests for timber, fuel wood, grass for thatching, and gravel for construction.
        The 1998 Land Act requires the establishment of Subcounty Land Committees. Kalangala is so far the only district
      with such land committees in the subcounties where the project is working.
        The mission was told that the district has only one doctor and that medicine is scarce. There are only two teachers
      per 100 pupils.
        Uganda’s position as a landlocked country increases transportation costs associated with importing crude palm oil
      and makes import substitution from the production on Bugala a viable option.

                                                                              EC 2010/63/W.P.4

      Sustainability also depends on a continued future for KOPGT, which is currently not
      financially sustainable without donor funding.
69.   The sustainability of the traditional oilseed subproject’s main output – sunflower
      production – hinges on the efficiency of the value chain, which will ensure a
      continuing demand for the product at reasonable levels of profitability for all
      stakeholders. These efficiencies have improved during the project period partly as a
      result of the increased output from farmers, but some weaknesses remain.
      Realization of higher levels of profit at the farm level is still largely constrained by
      high unit costs of production arising from manual technologies, low productivity
      and poor produce quality. Sunflower production is likely to be sustainable into the
      medium term. In the longer term, however, declining soil fertility may threaten its
70.   The sustainability of the work on essential oil crops depends on converting the
      knowledge generated by the research into marketing opportunities for farmers.
      Crops such as citronella are suitable for development and the farmers are keen to
      pursue these opportunities. However, the distilling process does not appear to be
      environmentally sustainable and, although a potential market has been identified,
      regular orders have not yet been established. Currently the implementing partner’s
      funding is totally reliant on external funding and is precarious.
71.   The sustainability of benefits is therefore considered as moderately satisfactory.
72.   Innovation, replication and scaling up. The oil palm subproject is one of the
      first major PPPs in the agricultural sector in Uganda. It has pioneered new forms of
      cooperation among the private sector, local and national government and farmers’
      organizations. The PPP brought a major new investor, BIDCO, to the country.
      Although the plantation mode of production is widely practised in other countries, it
      is new to Uganda. The structure and functions of KOPGT are also very innovative,
      particularly the mechanisms for protecting farmers’ interests vis-à-vis the nucleus
      estate. There are three critical innovative elements: (i) the pricing formula for FFB
      harvests is linked to the world price in Malaysia, which means that farmers are not
      price takers, nor is OPUL a price setter; (ii) with the purchase of the 10 per cent
      shareholding of OPUL, smallholders are represented on OPUL’s board; (iii) OPUL
      provides seedlings and fertilizer at cost to smallholders allowing them to benefit
      from the economies of scale and logistic organization implicit in modern production.
73.   The development of niche markets of high-value essential oil crops for poor farmers
      was also innovative. There is little cultivation of essential oil crops in Uganda and
      most essential oils used by industry are imported.
74.   The type of project intervention in the traditional oilseed subproject drew on tried
      and tested approaches to increasing agricultural production through improved seed
      supply, farmer extension and cottage processing. A particular innovation was the
      incorporation of a subcomponent on the development of food standards for the
      processing of oilseeds, which was not common practice at the time of design. Also
      novel – at least to Uganda – was situating these activities within a more integrated
      subsectoral approach.
75.   However, the traditional oil seed subproject’s main strength was in replicating and
      scaling up the approach to a large geographical area. This resulted in the
      subproject reaching a large number of beneficiaries. Its ability to do this rested
      primarily on the strategy of working through local government structures that had
      the mandate, if not the resources, to cover a large number of districts. The oil palm
      subproject also has the potential to be replicated and scaled as the private-sector
      partner is providing sufficient milling and processing facilities to accommodate
      increased smallholder production. However, a key to increasing small farmers’
      interest will be for the subproject to demonstrate its ability to be profitable through
      a successful first harvest.

                                                                             EC 2010/63/W.P.4

76.   Innovation, replication and scaling up are rated satisfactory.

VII. Performance of partners
77.   IFAD. IFAD invested substantial resources in a consultation-based appraisal
      process. However, while the design of the oil palm subproject was technically
      sound, it proved to be of dubious commercial viability and there was insufficient
      analysis of the socio-economic context, which resulted in slow uptake by farmers.
      On the other hand, IFAD enhanced the pro-poor focus of the oil palm subproject
      through support for the smallholding element by ensuring a fair price setting
      mechanism for FFBs, setting up KOPGT and enabling KOPGT to participate in
      OPUL’s board.
78.   Unlike other international financial institutions, IFAD did not have any
      environmental and social safeguards but it exercised its responsibilities in this
      respect pragmatically. For example, IFAD recommended the setting up of the
      impact monitoring system to ensure that environmental issues were addressed.
79.   IFAD provided important behind-the-scenes support to the Government during the
      difficult process of securing a private investor and subsequent negotiations over the
      redesign of the oil palm subproject. IFAD also helped in mitigating negative
      publicity by providing information and clarifications to donors and sponsoring
      publicity in the international media. In the more recent past, when there have been
      difficulties with BIDCO over the Government’s delay in securing land for the nucleus
      estate, IFAD has played an important mediating role between the two parties. IFAD
      ensured that the supervision process was effective and that the transition from the
      World Bank to the United Nations Office for Project Services (UNOPS) was smoothly
      executed (see paragraph 80). The IFAD country programme officer has provided
      valuable support to VODP, especially in discussions with donors. The Fund’s overall
      performance is therefore rated as satisfactory.
80.   Government of Uganda. There is strong ownership of and commitment to the
      project at all levels of government, especially for the oil palm subproject. Despite
      the opposition of vested interests and adverse publicity, senior officials in a number
      of ministries have played a major role in pushing it forward through their
      participation in the Land Acquisition Taskforce, the VODC and the impact
      monitoring system. The Government’s commitment to the project is also
      demonstrated by the fourfold increase in its financial support from US$3.8 million
      to US$12 million. That said, government procedures have caused delays in project
      implementation, which have reduced its efficiency. There were delays in the
      clearance of memorandums of understanding with implementing partners, which
      impeded release of funds to them and in procurement. In other areas, such as
      establishment of the PCO, compliance with loan covenants, audit and project
      monitoring, the Government’s performance has been satisfactory. The performance
      of the PCO has been commendable, especially in terms of responding to the
      external criticism faced by the project in the early years (e.g. by arranging public
      relations field visits to see the oil palm activities). The district local governments
      have continued to provide strong support to the project through their elected
      leaders and technical officers, despite the restructuring of the extension system
      and dwindling resources. The Government’s performance is rated moderately
81.   Cooperating institutions. The World Bank was the cooperating institution for
      VODP from the start until August 2004. Its supervision reports show a high degree
      of commitment to and knowledge of the project. The Bank was able to use its
      influence to push forward negotiations on the selection of the private investor and
      it performed an important mediating role. After the Government’s agreement with
      BIDCO on the changes in the oil palm subproject, the Bank was instrumental in
      pushing for a revised environmental impact assessment and reappraisal of the

                                                                                                             EC 2010/63/W.P.4

        project. UNOPS took over from the World Bank in September 2004.62 The
        supervision missions were conducted twice a year rather than once and there was
        more IFAD involvement. The missions undertaken by UNOPS identified
        problematic issues at an early stage (e.g. the weakness of the research institutes,
        lack of attention to soil fertility and seed supply, and the need to consider savings
        and credit activities and group marketing). However, both institutions focused
        primarily on the oil palm subproject, and gave less attention to the traditional
        oilseed subproject, and very little to the essential oil subproject. Overall, the
        performance of the cooperating institutions is considered to be satisfactory.
  82.   Private-sector partner (BIDCO, OPUL). The private-sector partner has
        demonstrated high commitment to the realization of the oil palm subproject and
        extraordinary patience with the Government over the negotiation of the agreement
        and the slow pace of land acquisition. Its commitment is reflected in the size of
        the investment to date and the speed of its implementation. By the end of 2009,
        BIDCO’s investment will amount to about US$75 million, which is already more
        than double the initially projected private-sector investment in the project. In three
        years, BIDCO has become Uganda’s fifteenth largest taxpayer with a contribution of
        28.5 billion Ugandan shillings last year (approximately US$14 million). On Bugala,
        OPUL has shown flexibility in adjusting to local conditions. For example, it agreed to
        reduce the minimum size of the consolidated outgrower plots, despite a
        considerable reduction in operational efficiency. It has provided informal technical
        backstopping to KOPGT and fully complied with the NEMA environmental risk
        mitigation conditions. The performance of the private-sector partner has been
        exemplary and is therefore ranked as highly satisfactory.

VIII. Summary of ratings
  83.   The three subprojects differed enormously in their performance and achievements.
        While all subprojects scored well in terms of relevance, the lower effectiveness,
        efficiency and impact of the oil palm and essential oil subprojects offsets the
        satisfactory effectiveness, efficiency, sustainability and rural poverty impact of the
        traditional oilseed subproject. 65 Therefore the overall achievement of the project is
        moderately satisfactory (4). The summary ratings for the project as a whole are
        provided in the table below.

          The World Bank withdrew as cooperating institution because it feared that the expanded oil palm project would not
        comply with its internal forestry safeguard policies.
             IFAD usually fielded a member of the country team and a consultant.
          BIDCO has not yet received the 20,000 ha of land for the estate on the mainland but it has not exercised its right to
        terminate the agreement with the Government if this land was not delivered within 12 months of the agreement.
             Note that the performance of partners is not included in the assessment of overall project achievement.

                                                                                              EC 2010/63/W.P.4

      Summary of the evaluation’s ratings of the VODP
                  Evaluation criteria                                 Project evaluation ratings
       Core performance criteria
       Relevance                                                                    5
       Effectiveness                                                                4
       Efficiency                                                                   3
       Project performance                                                          4

       Rural poverty impact
       Household income and assets                                                  5
       Human and social capital, and empowerment                                    5
       Food security and agricultural productivity                                  4
       Natural resources and the environment                                        4
       Institutions and policies                                                    5
       Overall rural poverty impact                                                 5

       Other performance criteria
       Sustainability                                                              4
       Innovation, replication and scaling up                                      5
       Overall project achievement                                                 4

       Partner performance
       IFAD                                                                        5
       Government of Uganda                                                        4
       Cooperating institutions                                                    5
       Private-sector partner                                                      6
         This is based on the ratings of six evaluation criteria – relevance, effectiveness, efficiency, rural
       poverty impact, sustainability, and innovation, replication and scaling up but not the performance of
       partners. In addition, the assessment is based on the evaluator’s judgement and not an arithmetic
       average of the ratings.

IX. Conclusions and recommendations
A.    Conclusions
84.   VODP is a high-profile project because of the novelty of the PPP, the extent of
      leveraged private-sector financing, and the political controversies involved with the
      oil palm subproject. It is a highly innovative project, with important lessons
      emerging from all three subprojects regarding: the advantages and challenges of a
      PPP (oil palm); the potential for replicating and scaling up traditional smallholder
      development through a value chain approach (oilseeds); and the challenges of
      developing niche markets for little known crops (essential oils). The project has had
      a synergistic effect in promoting sunflower cultivation and processing, which is
      evidenced not only by the large number of beneficiaries involved but also by the
      expansion in industrial milling and sales of vegetable oil.
85.   At this point, it is difficult to assess the achievements in the oil palm subsector
      because of the long delays in start-up. Thus, the potential achievements in the oil
      palm subproject need to be assessed cautiously as they are still to be realized.
      While the model is innovative and supports an equitable relationship between
      smallholder and the private sector and the benefits to smallholder farmers are
      expected to be substantial, only a small number of farmers are currently
      participating. Knowledge about the requirements for developing niche markets in
      essential oils has grown considerably, but the impact on farmers is still small.
      Despite the many challenges faced and the underestimation and poor management
      of project risks (related to land and the environment), the level of commitment to
      the project by sponsors, investors, managers and implementers is high. There has
      been strong cooperation and partnership in all subprojects and at all levels.

                                                                             EC 2010/63/W.P.4

86.   Oil palm. The oil palm subproject is now well under way and the private investor
      has proved to be an exceptionally good partner. The nucleus estate is 92 per cent
      established and the first harvests of FFBs on the nucleus estate and
      smallholder/outgrower land are expected by early 2010. The low participation of
      outgrowers and smallholders remains a concern, but the expectation is that the
      numbers will increase once farmers realize cash benefits from the harvest. With
      two years of harvesting before project completion, it is possible that the target
      numbers of smallholders and outgrowers will be achieved. The decision to expand
      the nucleus estate sixfold had serious implications for its implementation. It
      affected the pace and cost of implementation and provoked public concern about
      possible effects on the environment. These concerns provided fodder for vested
      interests opposed to the project, which in turn undermined potential support
      among landowners and farmers on the island. With the benefit of hindsight, the
      project should have explored the implications of the nucleus estate expansion
      earlier and in greater depth, anticipated potential land shortages and concerns by
      environmentalists, and proactively addressed these problems.
87.   KOPGT. Starting from scratch, KOPGT has developed into an effective
      organization, providing a range of services including farmer organization, extension
      and loan administration. The current system is working well, with mutually
      reinforcing links between farmers’ organizations, extension and credit. The
      financing system has been adapted to the special circumstances on the island and
      seems to be working well. It remains to be seen whether these loans can be
      recovered efficiently and the situation will need to be closely monitored after the
      first harvest. KOPGT will need to ensure that its accounting system can record all
      transactions in real time and provide individual accounting to farmers. In the short
      term, there is a need to consolidate the gains made in establishing KOPGT and to
      further strengthen it. In particular, KOPGT, as a multifunctional organization, will
      need to expand its learning, and improve its agronomic technical skills to help
      farmers. In addition, KOPGT will need to do this without increasing its overall cost,
      thus improving its operational efficiency. However, the main remaining concern is
      its financial sustainability, which needs to be addressed urgently.
88.   Traditional oilseeds. There has been strong achievement with traditional oilseeds
      particularly given the difficulties faced due to insurgency and intemperate weather
      in the project area. Performance could have been even better with some small
      improvements. The research stations could have released improved sunflower open
      pollinated varieties earlier and the link between the research stations, on-farm
      trials and the extension work could have been stronger; the phasing out of free
      seed and collaboration with private seed suppliers could have been introduced
      earlier; higher-output oil pressing machines could have been sourced to maintain
      interest in cottage processing; and the extension work could have been deepened
      with more attention to soil fertility, as well as broadened as the project progressed.
89.   The two main lessons from this subproject are: first, an integrated value chain
      approach – even if only partially integrated as in this case – increases the
      effectiveness of any one part of the chain as well as the overall set of linkages,
      thereby increasing profitability to all the actors. The improvements in seed
      distribution and the opportunities for value addition encouraged farmers to increase
      their area under sunflower cultivation, which in turn stimulated more traders and
      millers to enter the subsector and improved market conditions generally; second,
      working through the DAOs enormously scaled up project implementation and
      increased the number of beneficiaries. Working through UOSPA facilitated linkages
      to other private-sector operators, especially the millers.
90.   The NARO research institutes have fulfilled their obligations under the
      memorandum of understanding, but have faced some challenges. The main
      problems were lack of sufficient financial and human resources, weak staff capacity
      and the low priority given to vegetable oil crops. The lesson here is that financial

                                                                             EC 2010/63/W.P.4

      injections into weak research institutions are unlikely to be sustainable without
      assured future funding. The performance of UNBS in developing food standards for
      vegetable oilseeds and promoting awareness of the importance of these standards
      among producers and processors is commendable. UNBS would benefit from
      further resources to strengthen its work on inspection and compliance.
91.   Subsectoral advocacy. The role envisaged for VODC in supporting the overall
      subsector outside of the project was enlightened, if premature at the time.
      However, it raised conflicts of interest given its oversight role of VODP. The
      subsector support role has largely been taken over by OSSUP. OSSUP has wider
      representation than VODC and benefits from considerable enthusiasm and energy
      from its participants. It is working towards defined objectives and targets, and is
      developing priorities for advocacy and policy dialogue.
92.   Essential oils. Considerable advances were made in the R&D of different essential
      oil crops – which was the major objective of the project – but the piloting of
      processing and marketing of these crops showed that there are bottlenecks in the
      value chain that would need to be overcome before any commercial development
      could take place. Apparently there are opportunities for essential oil production in
      Uganda; there is a demand from industrialists (depending on quality, price, volume
      and regularity of supply, etc.), and these high-value crops could offer good returns
      for farmers in areas where there are few other alternatives. The main lessons from
      this subproject are that while R&D of new agricultural crops is necessary, it is
      expensive, and once trials have been undertaken on farmers’ land, it is difficult to
      manage their expectations regarding further development. Before launching into
      larger-scale production, it is important to research the downstream linkages in
      order to ensure that the potential profitability of the crop can be realized. However,
      such market research requires specific competencies and dedicated resources, and
      cannot be grafted onto the existing responsibilities of researchers or project staff.

B.    Recommendations
93.   Follow-on project. It is recommended that IFAD and the Government proceed
      with a follow-on project. Based on the above findings, the evaluation has the
      following recommendations for consideration when designing the follow-on project:
94.   Oil palm. A second phase should continue and extend the partnership with OPUL
      through the replication of the nucleus estate and smallholder oil palm model on
      Buvuma Island, and continued consolidation and expansion in Kalangala District to
      some outlying islands. The lessons learned from the current phase about the
      commercial potential for vegetable oil, the importance of adequate opportunities for
      securing land, effective environmental management and addressing farmers’
      incentives and constraints should be incorporated into the design of the second
      phase. This should include a full social and environmental impact assessment, a
      new environmental management plan with emphasis on communications, and
      activities to promote livelihood enhancement in the oil palm communities.
95.   KOPGT. The Government and IFAD should give priority to ensuring the long-term
      financial sustainability of KOPGT by 2016. The trust should be fully assessed by
      type of task in order to ensure full cost recovery for services provided as well as
      the sustainability of financing operations. A medium-term plan should be developed
      to indicate the long-term scope of extension and financial services and how these
      can be provided on a sustainable basis. The plan should clarify the relationship
      between KOPGT and the Kalangala Oil Palm Growers Association.
96.   Traditional oilseeds. IFAD and the Government should consider carefully the
      need for a second phase. The focus should be on helping smallholder farmers to
      supply crushing material (both sunflower and soybean) to millers. The project
      should address concerns about declining soil fertility and farmer training should be
      provided in the use of fertilizers and other agro-chemicals, conservation agriculture
      and other related activities. There should be support for mechanization and value

                                                                            EC 2010/63/W.P.4

      addition activities, as well as post-harvest handling and group marketing. IFAD and
      the Government should continue to support the development of food standards and
      codes of practice for the vegetable oil subsector through UNBS. In the second
      phase, there should be a sharper focus on promoting direct commercial relations
      between farmers and private-sector actors to promote the long-term sustainability
      of oilseed development. If IFAD and the Government consider it necessary to
      expand this component into areas formerly in the hold of the Lord’s Resistance
      Army further north because of the extent of poverty and the opportunities for
      successful development of oilseed production, the follow-on project should take
      account of the need for special skills in post-conflict work and coordination with
      other donors and NGOs working in this region.
97.   Subsectoral advocacy. IFAD and the Government should build upon the
      experience being amassed by OSSUP so that they can step up information
      exchange and coordination among the various value chain actors, and develop
      policy dialogue to promote the subsector. IFAD should provide a grant to support
      OSSUP. Through this support, OSSUP should be able to maintain and expand an
      institutional and knowledge management framework that is capable of promoting
      the sustainable development of Uganda’s vegetable oil subsector.
98.   Essential oils. IFAD and the Government should support the further development
      of speciality and niche market essential oils in order to realize value from the
      research investments made to date. The project should work with all stakeholders
      in the value chain to support the creation of commercially viable business
      opportunities and the development of market linkages. A comprehensive value
      chain analysis could be undertaken, focusing on bottlenecks in distilling and
      marketing and the mitigation of environmental damage arising from fuelwood use
      in distilling. A greater range of implementing partners could be involved, including
      private organizations or NGOs with expertise in industrial processing and
      marketing. Such support could be obtained through a stand-alone grant financed
      by IFAD to the organizations identified to provide this activity with a sustainable

     Project structure (adapted from project logical frameworks)

                                                                                                                                                                                                Annex I
          GOALS                                                                     - Increased local/national production of vegetable oil crops
        Long-term                                                                        - Increased substitution of vegetable oil imports
       development                                                                              - Poverty reduced in project areas

                                                    Increased household cash income among smallholders by revitalizing and increasing domestic vegetable oil production,
         PURPOSE                                                                         in partnership with the private sector
        Project and
                                                     Oil palm subproject                                 Traditional oilseeds subproject:                Essential oils subproject
                                       Sub-objective: An oil palm industry developed              Sub-objective: Production of traditional oilseeds      Sub-objective: potential essential
                                       through a partnership between the Government,              and processing of high quality oil increased           oil crops researched, developed
                                       the private sector and smallholders                                                                               and piloted commercially

                                    - Nucleus plantation established (6,500 ha)                   - Supply of improved seed increased through
                                    - Out grower/smallholder scheme (3,500 ha)                      adaptive research and seed multiplication               - Potential essential oil crops
        OUTPUTS                       established                                                 - Production and yields of vegetable oil crops by           identified, screened and field
       Deliverables                 - Farmers’ Trust providing services to members                  smallholder farming groups increased                      tested
                                    - Oil processing mill and refinery established                - Cottage processing of vegetable oilseeds                - Distillation processes piloted

                                    - Environmental monitoring system in place                      expanded                                                - Market opportunities identified
                                    - Increased R&D of oil palm by research institute             - Vegetable oil standards tested and promoted by

                            -   Contract private company                                           - Develop new oil seed varieties through adaptive         - Survey current cultivation of
                            -   Acquire land for nucleus estate                                      research                                                  essential oil crops
                            -   Establish and train KOPGT                                          - Multiply and distribute oil seeds through UOSPA         - Screen potential cultivars
         ACT I V I T I ES

                            -   Establish mechanisms for KOPGT representation (10 per              - Mobilize farmer groups through DAOs                     - Multiply planting material

                                                                                                                                                                                                EC 2010/63/W.P.4
                                cent shareholding in OPUL, pricing committee, service              - Provide extension support through demonstrations,       - Pilot and test distillation
                                cost panel)                                                          trainings, farm visits and field days                   - Pilot commercial production
                            -   Mobilize and organize smallholders and outgrowers                  - Promote cottage processing using Ram press              - Train research staff and
                            -   Provide inputs, extension support and loans to                       technology                                                farmers
                                smallholders                                                       - Strengthen food standards analytical services,          - Prepare market information
                            -   Provide infrastructure, support to Kalangala district local          develop standards for vegetable oil (UNBS)
                                government for land surveys
                            -   Set up the impact monitoring system to monitor
                                compliance with NEMA environmental conditions
Annex II                                                                                                EC 2010/63/W.P.4

Definition of the evaluation criteria used by the Office of

 Criteria                                                                       Definition

 Project performance
 Relevance                                       The extent to which the objectives of a development intervention are
                                                 consistent with beneficiaries’ requirements, country needs, institutional
                                                 priorities and partner and donor policies. It also entails an assessment
                                                 of project coherence in achieving its objectives.
 Effectiveness                                   The extent to which the development intervention’s objectives were
                                                 achieved, or are expected to be achieved, taking into account their
                                                 relative importance.
 Efficiency                                      A measure of how economically resources/inputs (funds, expertise,
                                                 time, etc.) are converted into results.
 Rural poverty impact
                                                 Impact is defined as the changes that have occurred or are expected
                                                 to occur in the lives of the rural poor (whether positive or negative,
                                                 direct or indirect, intended or unintended) as a result of development
 • Household income and assets                   Household income provides a means of assessing the flow of
                                                 economic benefits accruing to an individual or group, whereas assets
                                                 relate to a stock of accumulated items of economic value.
 • Human and social capital and                  Human and social capital and empowerment include an assessment
     empowerment                                 of the changes that have occurred in the empowerment of individuals,
                                                 the quality of grassroots organizations and institutions, and the poor’s
                                                 individual and collective capacity.
 • Food security and agricultural productivity   Changes in food security relate to availability, access to food and
                                                 stability of access, whereas changes in agricultural productivity are
                                                 measured in terms of yields.
 • Natural resources and the environment         The focus on natural resources and the environment involves
                                                 assessing the extent to which a project contributes to changes in the
                                                 protection, rehabilitation or depletion of natural resources and the
 • Institutions and policies                     The criterion relating to institutions and policies is designed to assess
                                                 changes in the quality and performance of institutions, policies and the
                                                 regulatory framework that influence the lives of the poor.
 Other performance criteria
 • Sustainability                                The likely continuation of net benefits from a development intervention
                                                 beyond the phase of external funding support. It also includes an
                                                 assessment of the likelihood that actual and anticipated results will be
                                                 resilient to risks beyond the project’s life.
 • Promotion of pro-poor innovation,             The extent to which IFAD development interventions have: (i)
     replication and scaling up                  introduced innovative approaches to rural poverty reduction; and (ii)
                                                 the extent to which these interventions have been (or are likely to be)
                                                 replicated and scaled up by government authorities, donor
                                                 organizations, the private sector and others agencies.

 Overall project achievement                     This provides an overarching assessment of the project, drawing upon
                                                 the analysis made under the various evaluation criteria cited above.
 Performance of partners
                                                 This criterion assesses the contribution of partners to project design,
 •   IFAD
                                                 execution, monitoring and reporting, supervision and implementation
 •   Government                                  support, and evaluation. The performance of each partner will be
 •   Cooperating institution                     assessed on an individual basis with a view to the partner’s expected
 •   NGO/community-based organizations           role and responsibility in the project life cycle.

Note: These definitions have been taken from the OECD/DAC Glossary of Key Terms in Evaluation and Results-Based
Management and from the Methodological Framework for Project Evaluation as agreed upon with the Evaluation Committee in
September 2003.

Annex III                                                                 EC 2010/63/W.P.4

The Office of Evaluation lead evaluator responsible for this evaluation was Mr Andrew
Brubaker. The consultants’ team leader was Ms Alison Scott who led the fieldwork and
prepared the evaluation report. Supporting background papers were provided by
Mr Asaph Besigye, on institutions and rural finance, and Mr Ole Olsen on agriculture.
Ms Oanh Nguyen provided data and research assistance and various inputs.
Administrative support was provided by Ms Lucy Ariano. Within IOE, Mr Ashwani Muthoo,
Mr Luigi Cuna, Mr Pietro Turilli, and Mr Jicheng Zhang were part of the internal peer
review process.

Overall responsibility: Mr Luciano Lavizzari, Director, IFAD Office of Evaluation.
Lead Evaluator: Mr Andrew Brubaker, Evaluation Officer.


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